Importance Of Collective Bargaining Agreement To Employers

Workers have the right to elect their representative for the purposes of collective bargaining. [7] In order to facilitate effective participation in the negotiation process, facilities should be made available to workers` representatives to prepare negotiations. [8] (vii) Collective bargaining should preferably be conducted at company level. This means that if there is more than one factory of the company, the local administration should be empowered to negotiate with the local union. Governments should consult with the relevant employers` and trade union organizations when setting minimum benefits and the minimum number of workers needed for their performance, in order to ensure that the minimum level of service does not lead to the ineffectiveness of the strike due to its limited effects. [9] Differences of opinion regarding the setting of these minimums should be settled by an independent body and not by the Ministry of Labour or the ministry or (public) enterprise concerned. [10] However, in order to take into account the role of collective bargaining on labour market performance, it is important to go beyond registration and examine its main characteristics and their actual functioning. Collective bargaining coverage in Italy is comparable to that of the Netherlands or the Nordic countries. Similarly, Australia and Germany have comparable coverage.

As Chapter 2 shows, however, these systems are very different. It is therefore important to also take into account the characteristics of the system itself. This reflects Aidt and Tzannatos (2008[6]) in their examination of trade unions, collective bargaining and macroeconomic performance, who concluded that in addition to union density or coverage, it is above all the functioning of the “global package” that counts. According to this theory, workers sell their individual labour only on collectively defined terms on the basis of a contract concluded by the collective bargaining process. [6] Aidt, T. and Z. Tzannatos (2008), “Trade unions, collective bargaining and macroeconomic performance: a review,” Industrial Relations Journal, Vol. 39/4, pp. 258-295. Degree of flexibility: Sectoral or national agreements can vary considerably in terms of the degree of flexibility they offer to enterprises. .

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